We will provide you $1,000, which you may use to cover expenses occurring as a result from your move, or for relocation benefits.
In this sentence, does the bold part mean:
You may use this money as relocation benefits
I am not sure to which part this "for relocation benefits" apply.
Without knowing the terms on which the money is being offered, it's impossible to say exactly what relocation benefits it covers.
In general, relocation benefits refer to the needs/comforts/investments that will be entailed on your move (relocation) from one place to another.
So while the actual expenses might cover such items as packing and transport costs, the relocation benefits might refer to obtaining essential services (TV, WIFI,) the necessary furniture or comforts in your new residence.
It is likely that any institution offering to subsidise a move would also specify what the money might be spent on - although $1,000 wouldn't go very far and might be just intended to cushion the overall cost of moving.
